Yahoo Finance Should Value Investors Buy Healthcare Services Group (HCSG) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Healthcare Services Group (HCSG). HCSG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 15.77, which compares to its industry's average of 21.49. Over the last 12 months, HCSG's Forward P/E has been as high as 28.70 and as low as 11.35, with a median of 15.77.
Another notable valuation metric for HCSG is its P/B ratio of 2.02. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.83. Within the past 52 weeks, HCSG's P/B has been as high as 2.63 and as low as 1.46, with a median of 1.97.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HCSG has a P/S ratio of 0.55. This compares to its industry's average P/S of 0.89.
Finally, our model also underscores that HCSG has a P/CF ratio of 16.80. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. HCSG's current P/CF looks attractive when compared to its industry's average P/CF of 18.36. Over the past year, HCSG's P/CF has been as high as 22.08 and as low as 12.13, with a median of 16.36.
Viad Corp (VVI) may be another strong Business - Services stock to add to your shortlist. VVI is a # 2 (Buy) stock with a Value grade of A.
Viad Corp is trading at a forward earnings multiple of 18.68 at the moment, with a PEG ratio of 1.25. This compares to its industry's average P/E of 21.49 and average PEG ratio of 1.87.
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Healthcare Services Group, Inc. (HCSG) : Free Stock Analysis Report
Viad Corp (VVI) : Free Stock Analysis Report
